US Global Investors has introduced an actively managed thematic equities ETF targeting the global aerospace and defense sectors.
Frank Holmes, CEO and Chief Investment Officer of US Global Investors.
The U.S. Global Technology and Aerospace & Defense ETF (WAR US) has been listed on NYSE with an expense ratio of 0.60%.
The launch of WAR comes amid heightened global military expenditures, which reached a historic $2.4 trillion in 2023, according to the Stockholm International Peace Research Institute. This marks the ninth consecutive year of rising defense spending, driven by intensifying geopolitical tensions and widespread modernization efforts.
Europe, in particular, has seen a significant surge in defense budgets, with European Union member states projected to allocate approximately $350 billion to aerospace and defense in 2023—equivalent to a record 1.9% of the bloc’s GDP.
The ETF focuses on sectors poised to play a pivotal role in shaping the future of defense and security, including semiconductors, artificial intelligence (AI), data centers, cybersecurity, aerospace, and electronic warfare. By offering diversified exposure to these industries, the fund aims to address the growing need for innovative solutions to counter modern threats.
US Global Investors combines quantitative and fundamental analysis to uncover opportunities for long-term outperformance while simultaneously managing risk.
Frank Holmes, CEO and Chief Investment Officer of US Global Investors, emphasized the broader scope of the fund: “The WAR ETF is more than just an investment in defense. With advances in robotics, drones, satellites, AI, and cybersecurity, the ETF aims to capture opportunities in these critical sectors that are transforming how we think about defense and security in the modern world.”
WAR joins US Global Investors’ expanding suite of thematic ETFs, which includes funds focused on airlines and air travel, global shipping and logistics, and precious metals mining. This latest launch reinforces the firm’s commitment to offering investors targeted exposure to dynamic sectors driving global change.